Correlation Between TRANSCORP HOTELS and STANDARD ALLIANCE
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By analyzing existing cross correlation between TRANSCORP HOTELS PLC and STANDARD ALLIANCE INSURANCE, you can compare the effects of market volatilities on TRANSCORP HOTELS and STANDARD ALLIANCE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TRANSCORP HOTELS with a short position of STANDARD ALLIANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSCORP HOTELS and STANDARD ALLIANCE.
Diversification Opportunities for TRANSCORP HOTELS and STANDARD ALLIANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRANSCORP and STANDARD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCORP HOTELS PLC and STANDARD ALLIANCE INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANDARD ALLIANCE and TRANSCORP HOTELS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TRANSCORP HOTELS PLC are associated (or correlated) with STANDARD ALLIANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANDARD ALLIANCE has no effect on the direction of TRANSCORP HOTELS i.e., TRANSCORP HOTELS and STANDARD ALLIANCE go up and down completely randomly.
Pair Corralation between TRANSCORP HOTELS and STANDARD ALLIANCE
If you would invest 20.00 in STANDARD ALLIANCE INSURANCE on September 3, 2024 and sell it today you would earn a total of 0.00 from holding STANDARD ALLIANCE INSURANCE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRANSCORP HOTELS PLC vs. STANDARD ALLIANCE INSURANCE
Performance |
| Timeline |
| TRANSCORP HOTELS PLC |
| STANDARD ALLIANCE |
TRANSCORP HOTELS and STANDARD ALLIANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSCORP HOTELS and STANDARD ALLIANCE
The main advantage of trading using opposite TRANSCORP HOTELS and STANDARD ALLIANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSCORP HOTELS position performs unexpectedly, STANDARD ALLIANCE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in STANDARD ALLIANCE will offset losses from the drop in STANDARD ALLIANCE's long position.| TRANSCORP HOTELS vs. NIGERIAN BREWERIES PLC | TRANSCORP HOTELS vs. NEM INSURANCE PLC | TRANSCORP HOTELS vs. INDUSTRIAL MEDICAL GASES | TRANSCORP HOTELS vs. INTERNATIONAL ENERGY INSURANCE |
| STANDARD ALLIANCE vs. CONSOLIDATED HALLMARK INSURANCE | STANDARD ALLIANCE vs. SECURE ELECTRONIC TECHNOLOGY | STANDARD ALLIANCE vs. ZENITH BANK PLC | STANDARD ALLIANCE vs. INDUSTRIAL MEDICAL GASES |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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